2017 ends on a high for southern services sector

Otago-Southland's service sector made huge gains in December from combined good weather and tourism, such as these cruise ship passengers enjoying lunch in the Octagon in Dunedin yesterday. Photo: Christine O'Connor

The southern service sector finished 2017 on a high, in December notching up its highest index score for the year.

The monthly BNZ-BusinessNZ performance of service index topped 73.2 points, including accommodation, tourism operators, cafes and restaurants, well above the points of upper North Island (on 57.9), central and lower North Island (53.5) and upper South Island-West Coast (52.1).

Virginia Nicholls

Last month, the separate manufacturing index in Otago-Southland was the highest of the four regions across the country, at 66.6 points, well above the 56.2 average for the year.

The 73.2 December services index was similarly well above the year's average of 59.7.

Scores above 50 reflect expansion, while below is contraction.

Just as staff shortages in the construction sector in the South are of mounting concern, the latest services index also reflected staff shortages, mainly in hospitality in Queenstown.